Westport Fuel Systems (NASDAQ: WPRT) and Dorman Products (NASDAQ:DORM) are both auto/tires/trucks companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, earnings, profitability, risk, analyst recommendations, valuation and dividends.
This is a summary of recent ratings and price targets for Westport Fuel Systems and Dorman Products, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Westport Fuel Systems||0||1||1||0||2.50|
Westport Fuel Systems currently has a consensus price target of $2.46, indicating a potential upside of 34.43%. Dorman Products has a consensus price target of $78.00, indicating a potential upside of 5.16%. Given Westport Fuel Systems’ stronger consensus rating and higher possible upside, analysts plainly believe Westport Fuel Systems is more favorable than Dorman Products.
Insider and Institutional Ownership
9.3% of Westport Fuel Systems shares are held by institutional investors. Comparatively, 76.6% of Dorman Products shares are held by institutional investors. 11.7% of Dorman Products shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Volatility and Risk
Westport Fuel Systems has a beta of 2.16, indicating that its stock price is 116% more volatile than the S&P 500. Comparatively, Dorman Products has a beta of 0.61, indicating that its stock price is 39% less volatile than the S&P 500.
Earnings & Valuation
This table compares Westport Fuel Systems and Dorman Products’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Westport Fuel Systems||$260.91 million||0.77||-$62.75 million||($0.80)||-2.29|
|Dorman Products||$892.77 million||2.84||$197.74 million||$3.28||22.61|
Dorman Products has higher revenue and earnings than Westport Fuel Systems. Westport Fuel Systems is trading at a lower price-to-earnings ratio than Dorman Products, indicating that it is currently the more affordable of the two stocks.
This table compares Westport Fuel Systems and Dorman Products’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Westport Fuel Systems||-32.70%||-81.28%||-25.48%|
Dorman Products beats Westport Fuel Systems on 9 of the 13 factors compared between the two stocks.
About Westport Fuel Systems
Westport Fuel Systems Inc, formerly Westport Innovations Inc, is a Canada-based provider of low-emission engine and fuel system technologies utilizing gaseous fuels. It operates through the Westport Operations segment. The Westport Operations segment designs, manufactures and sells compressed natural gas, liquefied natural gas, and liquefied petroleum gas components and systems to original equipment manufacturers and to aftermarket customers. Its subsidiaries design and manufacture a range of components, including pressure regulators, injectors, electronic control units, valves and filters; sell mono-fuel, bi-fuel and dual-fuel diesel blend conversion kits, and also offer full engine management systems and solutions. The Westport Operations segment has a customer base in Europe and North America, as well as in Asia, South America, and Africa.
About Dorman Products
Dorman Products, Inc. is a supplier of replacement parts and fasteners for passenger cars, light trucks and heavy duty trucks in the automotive aftermarket. As of December 31, 2016, the Company distributed and marketed approximately 155,000 different stock keeping units (SKU’s) of automotive replacement parts and fasteners. As of December 31, 2016, approximately 83% of its products were sold under brands that it owned and the remainder of its products were sold for resale under customers’ private labels, other brands or in bulk. Its products are sold in the United States through automotive aftermarket retailers, national, regional and local warehouse distributors, and specialty markets, and salvage yards. It also distributes automotive replacement parts outside the United States, with sales primarily into Canada, Mexico, Europe, the Middle East, and Australia. Its parts are marketed under the OE Solutions, TECHoice, AutoGrade, Conduct-Tite, FirstStop and HD Solutions brand names.
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